A LexisNexis Blog

Take a Rerack

In March 2010, Southern Products, Inc. registered 2,500,000 shares of common stock with the proposed maximum offering price per share at $0.005. That’s because they’re only looking to raise $12,500. And what would shareholders be investing in? The burgeoning market of beer pong table production, of course. Southern Productions incorporates insulation and finishing systems used in the construction industry to create a superior product that is, conveniently, water resistant.
If investing in a company committed to the future of frat boy table sports sounds too good to be true, that’s because it is. Although the risks they disclose are common ones, it’s amusing to consider the products to which they apply. A few examples:

Previous to this offering, there was no active trading market for shares in beer pong table companies.

They have limited experience building beer pong tables, only recently building “initial prototype products for use in marketing our beer pong tables to bars, restaurants, and individual consumers.”

The filing also points out that while beer pong has “grown rapidly from an informal past time into a widely popular sport,” the entertainment market can be a fickle one; it is acknowledged that “despite our best efforts, the popularity of beer pong may decline.”